Template-Type: ReDIF-Paper 1.0
Author-Name:  Jonathan E. Alevy
Author-Name-First: Jonathan
Author-Name-Last: Alevy
Author-Email:  afja@uaa.alaska.edu
Author-Workplace-Name: Department of Economics, University of Alaska Anchorage
Author-Name:  Oscar Cristi
Author-Name-First: Oscar
Author-Name-Last: Cristi
Author-Email:  ocristi@udd.cl
Author-Workplace-Name: CIEN, Universidad del Desarrollo
Author-Name:  Oscar Melo
Author-Name-First: Oscar
Author-Name-Last: Melo
Author-Email:  omelo@puc.cl
Author-Workplace-Name: Department of Agricultural Economics, Pontificia Universidad Catolica de Chile
Title: Right-to-Choose Auctions: A Field Study of Water Markets in the Limari Valley of Chile 
Abstract: Field experiments were conducted with farmers in the Limarí Valley of Chile to test extant
theory on right-to-choose auctions. Water volumes that differed by reservoir source and time
of availability were offered for sale by the research team. The auctions were supplemented by
protocols to elicit risk and time preferences of bidders. We find that the right-to-choose auctions
raise significantly more revenue than the benchmark sequential auction. Risk attitudes
explain a substantial amount of the difference in bidding between auction institutions, consonant
with received theory. The auction bidding revealed distinct preferences for water types,
which has implications for market re-design. 
Number: 2010-04
Keywords: auction design, field experiments,water market
Classification-JEL: C93, Q25, D44
Creation-date:2010
File-URL: http://www.econpapers.uaa.alaska.edu/RePEC/ala/wpaper/ALA201004.pdf
File-Format: Application/pdf
Handle: RePEc:ala:wpaper:2010-04